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Abstract

Sustainable economic growth has become one of the economic goals of concern for policymakers around the world. Financial inclusion has received significant attention in planning strong policies to achieve growth goals. This study aims to analyze how fast the response to economic growth is due to shocks to financial depth, financial access, and financial stability in 34 provinces in Indonesia, 2014-2019. This study uses vector auto-regression (VAR) models and Granger causality to test the main research questions. The results of the study show that financial depth and stability can promote growth, not vice versa. The existence of shocks to the three financial inclusion variables responded differently to economic growth.

Keywords

Financial depth Financial acces Financial stability Economic growth

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Author Biographies

Purwiyanta Purwiyanta, Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia

Academic Profile: Google Scholar; Sinta; Researchgate

Ambar Pujiharjanto, Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia

Academic Profile: Google Scholar; ORCID; Sinta

Rini Dwi Astuti, Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia

Academic Profile: Google Scholar; ORCID; Sinta; Researchgate

Ploypailin Kijkasiwat, Khon Kaen University, Thailand

Academic Profile: Scopus; ORCID; Google Scholar; Researchgate

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